The Cherry Lady 01
1. Identify the most critical issues that confront The Cherry Lady, now and in the future. Why have these issues arisen or likely to arise and what are the implications? There are several critical issues the Cherry Lady is confronting right now. All have direct implications on further strategy to grow.
Alicia needs to decide on the strategy she wants to follow. Either she will continue to run her business steadily, while having the same problems and rather slow development result or she will dare to expand rapidly including a contract with Epicurean Selection.
The current direction of TCL grow is up and stable. TCL increases the sales yearly – almost 6times in first year of its operation and its sales doubled in
2006 in compression to 2005. However still those numbers does not reflect the opportunities TCL has.
The basic company problem starts with the production process. It needs to be transformed from a handmade “in-house production” to kind of large-scale process. Alicia was trying to do that however with out unequivocal success.
Her own in house production seems to be not effective enough regarding the quantity level. For some time she was trying to find the proper and trustworthy copacker that can provide proper level of quality TCL wants to represent.
However this process is still evolving.
The next issue TCL is facing is lack of funds for development. The company exists on “in/out” procedures, which will never allow for effective development.
The current development process will never allow her for expand over the certain level.
Another issue TCL is struggling with is insufficient marketing. The company does not take advantage of the possibilities that are around e.g. increase of sales for other sessional holidays e.g. Valentines days, Mother Days etc., due to lack of proper product display including the occasional packaging. Alicia seeing those possibilities does not invest in it due to regular money problems she has.
The next issue TCL confronts is the
Alicia needs to decide on the strategy she wants to follow. Either she will continue to run her business steadily, while having the same problems and rather slow development result or she will dare to expand rapidly including a contract with Epicurean Selection.
The current direction of TCL grow is up and stable. TCL increases the sales yearly – almost 6times in first year of its operation and its sales doubled in
2006 in compression to 2005. However still those numbers does not reflect the opportunities TCL has.
The basic company problem starts with the production process. It needs to be transformed from a handmade “in-house production” to kind of large-scale process. Alicia was trying to do that however with out unequivocal success.
Her own in house production seems to be not effective enough regarding the quantity level. For some time she was trying to find the proper and trustworthy copacker that can provide proper level of quality TCL wants to represent.
However this process is still evolving.
The next issue TCL is facing is lack of funds for development. The company exists on “in/out” procedures, which will never allow for effective development.
The current development process will never allow her for expand over the certain level.
Another issue TCL is struggling with is insufficient marketing. The company does not take advantage of the possibilities that are around e.g. increase of sales for other sessional holidays e.g. Valentines days, Mother Days etc., due to lack of proper product display including the occasional packaging. Alicia seeing those possibilities does not invest in it due to regular money problems she has.
The next issue TCL confronts is the